For years, Japanese shoppers were eager to shop for the latest gadgets, but now the falling yen has put new iPhones out of reach…
For years, Japanese shoppers were eager to shop for the latest gadgets, but now the falling yen has shut some people out of new iPhones and fueled the second-hand trade. growing in a large market of Apple Inc.
The Japanese currency fell to a 32-year low against the dollar, squeezing consumers and spurring a broader spending shift in the world’s No. economy. Industry watchers say Japanese shoppers have become more open to buying second-hand, thanks in part to the rise of online auction sites.
In July, Apple raised input prices iPhone 13″ almost one-fifth. The basic iPhone 14 then launched at 20% more than the iPhone 13, even if the US price remained unchanged at $799. While the dollar has risen against global currencies this year, the yen has been particularly affected, falling 22%.
Salaryman Kaoru Nagase wanted a new phone but couldn’t justify the price of an iPhone 14, which starts at 119,800 yen ($814). Instead, he bought a used iPhone SE 2 in Akihabara, Tokyo electronic device district for less than a third of them.
“For more than 100,000 yen, the iPhone 14 is too expensive and I can’t afford it. It’s fine if the battery lasts for 10 years,” he said. The iPhone SE 2, released in 2020 but without the iPhone 14’s dual rear cameras, is a “good balance” between cost and features, he said.
Apple declined to comment for this story. But in an annual regulatory filing last month, it said Japanese sales fell 9% in the year ended September 24 due to the weakening yen.
Apple’s chief financial officer Luca Maestri also acknowledged to analysts last month that a strong dollar has led to an increase in the prices of its products in some countries, but sales are still up by double digits. numbers in Indonesia, Vietnam and other markets face currency challenges.
According to technology market research firm MM Research Institute, sales of used smartphones increased by nearly 15% in Japan to a record 2.1 million in the last financial year and is likely to hit the market. 3.4 million by 2026, according to technology market research firm MM Research Institute.
100,000 YEN RARRIER
Taishin Chonan bought a used iPhone 13 after the screen cracked on one of the two devices he brought with him for personal use. The alternative has a higher resolution, better battery and camera than the iPhone 7 he is using.
“Until now I have only bought a new phone, this is my first time buying a used phone,” said the 23-year-old. “The new models are expensive.”
Even after the price increase, the iPhone 14 sold in Japan is still the cheapest of the 37 countries without taxes, MM Research Institute said in a survey in September. The research firm added copper. A weakening yen could prompt Apple to raise prices once again, potentially reducing its massive 50% market share in Japan. smartphone market.
Daisuke Inoue, chief executive officer of Belong Inc, a unit of trader Itochu Corp that sells used phones and tablets online, said the latest iPhones are now priced above 100,000 yen.
Average sales on Belong’s e-commerce site Nicosuma have tripled since Apple raised prices in July from the average for the previous three months, Inoue said. At Belong’s operations center outside Tokyo, shipments of used phones are unboxed and sorted before being inspected, sorted and cleaned by rows of workers sitting at long tables.
These phones are then photographed from various angles for sale online. Inoue said Belong uses Itochu’s global network to source used equipment both in Japan and overseas, depending on where it’s best priced.
Some of the devices are purchased from businesses, such as tablets previously used for payments in cafes or display screens in taxis, he said.
Many Japanese have traditionally been wary of second hand items, including electronics, but that is changing.
Mercari commerce site has seen strong growth in used sales smartphoneA spokesman for Mercari, Inc. said that while sales of home appliances and electronics also grew.
With Japan reopening to foreign tourists, the used iPhone market is getting an extra boost.
Retail chain Iosys Co Ltd has seen the number of foreign tourists buying used iPhones skyrocket in the past two months.
“The yen continues to weaken,” said Iosys CEO Takashi Okuno. “The trend to visit Japan and buy an iPhone is making a comeback.”
(1 dollar = 147,1200 yen)
